H.B. 140

VETOES

(B)     UPON ISSUANCE OF A TANGIBLE DOCUMENT OF TITLE IN SUBSTITUTION
FOR AN ELECTRONIC DOCUMENT OF TITLE IN ACCORDANCE WITH SUBSECTION (A):

(1)     THE ELECTRONIC DOCUMENT CEASES TO HAVE ANY EFFECT OR
VALIDITY; AND

(2)      THE PERSON THAT PROCURED ISSUANCE OF THE TANGIBLE
DOCUMENT WARRANTS TO ALL SUBSEQUENT PERSONS ENTITLED UNDER THE
TANGIBLE DOCUMENT THAT THE WARRANTOR WAS A PERSON ENTITLED UNDER THE
ELECTRONIC DOCUMENT WHEN THE WARRANTOR SURRENDERED CONTROL OF THE
ELECTRONIC DOCUMENT TO THE ISSUER

(C)     UPON REQUEST OF A PERSON ENTITLED UNDER A TANGIBLE DOCUMENT
OF TITLE, THE ISSUER OF THE TANGIBLE DOCUMENT MAY ISSUE AN ELECTRONIC
DOCUMENT OF TITLE AS A SUBSTITUTE FOR THE TANGIBLE DOCUMENT IF:

(1)     THE PERSON ENTITLED UNDER THE TANGIBLE DOCUMENT
SURRENDERS POSSESSION OF THE DOCUMENT TO THE ISSUER; AND

(2)     THE ELECTRONIC DOCUMENT WHEN ISSUED CONTAINS A
STATEMENT THAT IT IS ISSUED IN SUBSTITUTION FOR THE TANGIBLE DOCUMENT.

(D)     UPON ISSUANCE OF AN ELECTRONIC DOCUMENT OF TITLE IN
SUBSTITUTION FOR A TANGIBLE DOCUMENT OF TITLE IN ACCORDANCE WITH
SUBSECTION (C):

(1)      THE TANGIBLE DOCUMENT CEASES TO HAVE ANY EFFECT OR
VALIDITY; AND

(2)      THE PERSON THAT PROCURED ISSUANCE OF THE ELECTRONIC
DOCUMENT WARRANTS TO ALL SUBSEQUENT PERSONS ENTITLED UNDER THE
ELECTRONIC DOCUMENT THAT THE WARRANTOR WAS A PERSON ENTITLED UNDER
THE TANGIBLE DOCUMENT WHEN THE WARRANTOR SURRENDERED POSSESSION OF
THE TANGIBLE DOCUMENT TO THE ISSUER

7-106.

(A)     A PERSON HAS CONTROL OF AN ELECTRONIC DOCUMENT OF TITLE IF A
SYSTEM EMPLOYED FOR EVIDENCING THE TRANSFER OF INTERESTS IN THE
ELECTRONIC DOCUMENT RELIABLY ESTABLISHES THAT PERSON AS THE PERSON TO
WHICH THE ELECTRONIC DOCUMENT WAS ISSUED OR TRANSFERRED.

(B)     A SYSTEM SATISFIES SUBSECTION (A), AND A PERSON IS DEEMED TO HAVE
CONTROL OF AN ELECTRONIC DOCUMENT OF TITLE, IF THE DOCUMENT IS CREATED,
STORED, AND ASSIGNED IN SUCH A MANNER THAT:

(1)     A SINGLE AUTHORITATIVE COPY OF THE DOCUMENT EXISTS WHICH
IS UNIQUE, IDENTIFIABLE, AND, EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPHS

(4), (5), AND (6), UNALTERABLE;

(2)     THE AUTHORITATIVE COPY IDENTIFIES THE PERSON ASSERTING
CONTROL AS:

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